The cryptocurrency market is flashing some signs of caution with just two days to go before a critical software upgrade of the Ethereum network, the sector’s most commercially important blockchain.
The wariness is evident in the way Ether, the network’s native token, is lagging Bitcoin of late: the second-largest digital asset is down about 13% in the past month, compared with an 9% drop in Bitcoin. The gap between a gauge of expected volatility in Ether and a similar index for Bitcoin is also elevated.
At issue is whether the blockchain’s revamp, which is designed to dramatically shrink its energy use, goes smoothly or not. There is also a risk that an Ether jump since mid-June driven partly by hype around the update -- known as the Merge -- will continue to fizzle once the upgrade is done and dusted.
While it seems unlikely, “we can’t rule out a buy-the-rumor sell-the-fact playing out” around the Merge, Chris Weston, head of research at Pepperstone Group Ltd., wrote in a note...
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INN caught up with cryptocurrency investment expert Dan Hoover to review the current landscape and where the market may be heading. The cryptocurrency investment marketplace has gone through severa...